MESL 2024

The 2020 MESL reflected the minimum costs in the first quarter of the year, and can serve as a reference point to measure the impact of the pandemic and subsequent inflation shocks. Compared to 2020, the cost of the MESL food basket has increased by 21.2% and the MESL household energy basket has increased by 64.5%. Although declines in other areas of expenditure have offset some of these increases, the overall impact is a 16.8% increase cost of the goods and services needed for a MESL.

Food

From 2023 to 2024 the MESL food basket has increased by an average of 1.4% for urban households, and 1.6% for rural households. The cumulative change in the cost of food from 2020 to 2024 is an average increase of 23.1% for urban households and 17.8% for rural households.

Infant food costs showed the greatest increase in the past year, across the individual MESL food budgets, rising by 7.2% in the twelve months to March 2024. The infant budget has also seen the largest individual change from 2020 to 2024, increasing by 27.3% in this period.

Energy

Rising energy prices had driven much of the previous increases in MESL costs. However, 2024 saw a decrease in the MESL household energy basket by 24.9% for urban households and 12.2% for rural households. This represented the most significant rate of change in the MESL basket for all households examined.

Despite the significant reduction in energy prices over the past year, they remain much higher than previous living cost price levels. From March 2020 to March 2024, the cost of Household Energy in the MESL increased by 62.7% for urban households and 54.0% for rural households.

Income Adequacy

MESL research establishes the costs of the goods and services required for a dignified life at a minimally acceptable level. This report benchmarks the adequacy of both social welfare supports and minimum wage employment for a range of household compositions.

While the incidence and severity of deep income inadequacy, where social welfare meets less than 90% of MESL costs, has improved since 2023. However, it remains elevated compared to the declining trend from 2020 to 2022. Households with older children (aged 12 and over) and single adult headed households are at a greater risk of deep income inadequacy when dependent on social welfare.

Finally

This report provides an update of the MESL baskets to reflect prices in 2024, specifying the average weekly cost of the goods and services agreed as necessary for a socially acceptable minimum standard of living with dignity.

The 2024 MESL comes after a period of severe increases in living costs. The research finds a relative stabilisation in costs, with a slight decline compared to 2023. However, the cumulative impact of inflation to date has resulted in a significant increase of 16.8% in core MESL costs from 2020 to 2024. By comparison, the standard core working-age social welfare rate has increased by 14.3% over the same period. Consequently, the incidence and depth of inadequate income continues to be at a higher rate than that found prior to 2023.

Policy recommendations based on MESL research findings are presented to the government through submissions such as the pre-budget submission to the Department of Social Protection, the submission to the Low Pay Commission, and broader engagements with policymakers.

Annual MESL Data

The MESL budgets show the cost of the goods and services required for different household types.

The Annual MESL Data provides summary expenditure budgets and income adequacy assessments are available for each household type by year.